Review Article Development of Solar Electricity Supply...

Hindawi Publishing CorporationJournal of Solar EnergyVolume 2013 Article ID 632364 10 pageshttpdxdoiorg1011552013632364

Review ArticleDevelopment of Solar Electricity Supply System in IndiaAn Overview

Sandeep Kumar Gupta1 and Raghubir Singh Anand2

1 Department of Industrial amp Management Engineering Indian Institute of Technology Kanpur Kanpur 208016 India2Department of Electrical Engineering Indian Institute of Technology Kanpur Kanpur 208016 India

Correspondence should be addressed to Sandeep Kumar Gupta sandipkgiitkacin

Received 26 January 2013 Revised 26 March 2013 Accepted 2 April 2013

Academic Editor Paulo Fernandes

Copyright copy 2013 S K Gupta and R S AnandThis is an open access article distributed under the Creative Commons AttributionLicense which permits unrestricted use distribution and reproduction in any medium provided the original work is properlycited

Solar electricity supply system has grown at very rapid pace in India during the last few years A total of 104784MW of grid con-nected photovoltaic projects and 1608MW of off-grid systems have been commissioned under different policy mechanismsbetween January 2010 and November 2012 It is observed that solar capacity development has achieved a greater height under statepolicies (68981MW) than others A study is made in this paper of various national and state level schemes incentives packagesinstruments and different mechanisms to promote solar photovoltaics and its effectiveness

1 Introduction

The changing lifestyle with rapid industrialization has madeelectricity an indispensable and essential commodity over theyears During the last few decades increasing prices of elec-tricity with increasing demand and decreasing fossil fuelreserves have raisedmany concerns for policymakers invest-ors and customers Moreover existing supply chain alsoposes a challenge of carbon foot print due to its dependencyon fossil fuels like coal and oil for electricity generation [1ndash3]

To alleviate the concern policy makers across the worldhave been looking for some sustainable and feasible alter-native input energy sources for electricity generation Theyfoundmany options like nuclear wind solar hydro biomasstidal geothermal and so forth [3 4] However literaturesupports solar energy as it is the most ready and greenoption available across the world [5]The report published byIndianMeteorological Department (IMD) Ministry of EarthSciences Government of India (GoI) [6] states that

The solar energy received by the earth is morethan 15000 times the worldrsquos commercial energyconsumption and over 100 times the worldrsquosknown coal gas and oil reserves And this energyis readily available during the day for anyone totap and that too free and without any constraint

Initially used to supply electricity to satellites due to itshigh generation cost solar technologies and its potential haveimproved enough to supply electricity not only to remotelocations but also to supplement the national grid power atmultimegawatt levels [7]

In India wind- and solar-based systems have been gettinggood response under the conducive environment createdthrough different policy measures In this paper our focusis only on the development of solar-based electricity supplysystemsThere are different kinds of supportmeasures to pro-mote grid connected and off-grid solar systems We discussthese in detail in the subsequent sections

2 Indiarsquos Potential for Solar Energy

India is located in the northern hemisphere lying betweenlatitudes 8∘41015840N and 37∘61015840N and longitudes 68∘71015840E and97∘251015840E the country is divided into almost two equal halvesby the Tropic of Cancer (23∘301015840N) The southern half whichcoincideswith peninsular India lies in the tropical zone whilethe northern half belongs to the subtropical zone

Due to its locational advantage on average the countryexperiences 250 to 300 sunny days per year and receivesan average hourly radiation of 200MWkm2 The annual

2 Journal of Solar Energy

Figure 1 Indiarsquos DNI resource at 10 km resolution (source NREL[8])

global radiation varies from 1600 to 2200 kWhm2 [6] whichis typical of the tropical and subtropical regions NRELrecently released 10 km resolution solar resource maps forIndia based on the SUNY satellite Figure 1 shows the annualaverage direct normal irradiance (DNI) across India whichillustrates that most areas of the country have greater than5 kWhm2day of DNIThis image shows the areas of highestresource occurring in the state of Gujarat Rajasthan and thehigh-elevation Himalayan region Figure 1 also shows largeareas with annual average DNI greater than 55 kWhm2dayin the state ofMadhya Pradesh Chhattisgarh andMaharash-tra and smaller land areas with similar resources in severalother states This area could be further increased by the useof building-integrated PV Though large-scale CSP has notyet been deployed in India one study has estimated thatthis technology alone could generate 11000 TWh per year forIndia (Table 1) In addition it also offers huge potential fordecentralized distributed electricity supply system which canaddress the problem of electricity to a remote location withlesslower transmission losses

In spite of huge solar energy potential the portfolio of REhas developed in a very unique way in India though latelyintroduced wind power technology has left behind all thetraditional RE technologies such as biomass solar power andSHP as shown in Figure 2 It also demonstrates that solarpower has the maximum untapped potential as 979 ofestimated potential of 50000MW And the overall untappedpotential of 813 seeks immediate attention of policymakers

Table 1 Indiarsquos estimated land area suitable for CSP developmentand generation potential [28]

DNI class(kWhm2year)

Land area suitable forCSP development (km2)

CSP generatingpotential (TWhyear)

2000ndash2099 83522 78932100ndash2199 11510 11402200ndash2299 5310 5502300ndash2399 7169 7742400ndash2499 3783 4262500ndash2599 107 132600ndash2699 976 1192700ndash2800+ 120 15Total 112497 10930

4913

0

1538

4

1798

2

5000

5000

0

1374

96

1796

7

3434

1210

2110

1044

2576

5

Estimated potential (MW)Installed capacity (MW)Untapped potential ()

16

14

12

10

8

6

4

2

0

RE ca

paci

ty

times104

1200

1000

800

600

400

200

00

Ove

rall

Sola

r pow

er (S

PV)

Biom

ass p

ower

Win

d po

wer

Unt

appe

d po

tent

ial (

)

Baga

sse c

ogen

erat

ion

Smal

l hyd

ropo

wer

Figure 2 Development of overall RE portfolio as on 31st of August2012 (source MNRE [9])

for exploiting this available RE resource in a very efficientand effective manner to overcome the problem of electricityshortage

3 Development of Solar Electricity Systemunder Different Policy Measures in India

Government of India has recognized the importance of solarenergy as one of the sustainable sources of energy underNational Action Plan for Climate Change (NAPCC) NAPCCaims to derive 15 of its energy requirements from REsources by the year 2020 [10] Various policy measures suchas preferential tariff or fixed tariff or feed-in tariff (FiT) RPOexcise duty exemption and soft loan have been implementedto achieve the above-mentioned target

Journal of Solar Energy 3

Table 2 State-wise solar RPO

State RPO ()FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Andhra Pradesh 025 025 025 025 025 025Arunachal Pradesh No regulation issued for RPO by the power departmentAssam 010 015 020 025Bihar 025 025 050 075 100 125 150 175 200 250 300Chhattisgarh 025 050Delhi 010 015 020 025 030 035JERC (Goa and UT) 030 040Gujarat 050 100Haryana 000 005 075Himachal Pradesh 001 025 025 025 025 025 050 075 100 200 300Jammu and Kashmir 010 025Jharkhand 050 100Karnataka 025Kerala 025 025 025 025 025 025 025 025 025 025 025Madhya Pradesh 040 060 080 100Maharashtra 025 025 050 050 050Manipur 025 025Mizoram 025 025Meghalaya 030 040Nagaland 025 025Orissa 010 015 020 025 030Punjab 003 007 013 019Rajasthan 050 075 100Sikkim No regulation issued for RPO by the power departmentTamil Nadu 005Tripura 010 010Uttarakhand 003 005Uttar Pradesh 050 100West Bengal 025 030 040 050Source SERCs order on RPO regulations [29]

RPO is one of the tools which have been implemented bymany countries to achieve their ambitious RE goals [11 12] InIndia state electricity regulatory commissions (SERCs) deter-mine the obligated entities which generally include distribu-tion companies captive consumers and any open-accessusersThen these SERCs fix a certain proportion of electricityconsumption as RPO targets for the above-mentioned obli-gated entities Due to significant cost difference in solar andnonsolar RE technologies [13] most of the states have comeup with their separate targets for solar electricity as shown inTable 2 As per the National Tariff Policy it is envisaged thatthe targets for solar RPO shall be 025 by 2012-2013 extend-ing to 3 by 2022 [14] but only the state of Bihar has followedit in its solar policy the way it is expected

A study conducted byMNRE shows thatmost of the statescould not install capacity of solar system as per their RPOcompliance requirement for the year 2012-2013 as on 12thof November 2012 (Table 3) The states like Uttar Pradesh(4227MW) Haryana (1722MW) Maharashtra (1513MW)and so forth are far away from their RPO target However

states of Gujarat (4883MW) Rajasthan (823MW) andKar-nataka (611MW) have already surpassed their RPO require-ment Other states like Madhya Pradesh Orissa Punjab andUttarakhand may soon exceed their targets

However when annual solar capacity requirement forRPO compliance is analyzed (Table 4) it is found that Indiawould need sim34000MW of solar capacity to achieve thetarget of 3 contribution from solar electricity till 2022 Itmeans that set RPO targets are not sufficient to have a solarenergy dominant RE development scenario [15] The policymakers expect to fill this gap with statesrsquo solar energy promo-tion policies and programmes Most of the states have comeup with their solar energy specific policies which are dis-cussed in detail in subsequent sections

As far as state-wise installation is concerned Table 5clearly demonstrates that states of Gujarat (6583) andRajasthan (1920) have major share in total installedcapacity (104787MW) Other states like Andhra Pradesh(2375MW) and Maharashtra (2100MW) also have signifi-cant contribution However it is quite remarkable that out of


Table 3 Expected solar RPO requirement and compliance for 2012-2013 [30]

StateProjecteddemandlowast(MU)

Solar RPOtarget

(2012-2013)

Solar RPOtarget

(2012-2013)

Capacity requiredfor meeting solar

RPO

Total capacity tiedup as on31112012lowast

Installed capacityas on 31112012

Gap to be fulfilledin 2012-2013

2012-2013 MU MW MW MW MWAndhra Pradesh 98956 025 24739 1486 755 2375 731Assam 6810 015 1021 61 5 mdash 114Bihar 15272 075 11454 688 0 mdash 6882Chhattisgarh 21174 050 10587 636 29 400 3461Delhi 28598 015 4290 258 2525 253 2325JERC (Goa and UT) 12860 040 5144 309 17 169 2921Gujarat 79919 100 79919 4802 9685 68981 (4883)Haryana 40167 075 30125 1810 88 780 1722Himachal Pradesh 8647 025 2162 130 0 mdash 130Jammu and Kashmir 14573 025 3643 219 0 mdash 218Jharkhand 6696 100 6696 402 36 1600 42Karnataka 65152 025 16288 979 159 1400 (611)Kerala 21060 025 5265 316 0025 003 316Madhya Pradesh 53358 060 32015 1923 21321 725 (209)Maharashtra 150987 025 37747 2268 755 2100 1513Manipur 608 025 152 09 0 mdash 09Mizoram 418 025 104 06 0 mdash 06Meghalaya 2154 040 862 52 0 mdash 52Nagaland 596 025 149 09 0 mdash 09Orissa 24284 015 3643 219 54 1300 (321)Punjab 48089 007 3366 202 51825 933 (316)Rajasthan 55057 075 41293 2481 3304 20115 (823)Tamil Nadu 91441 005 4572 275 18105 1705 94Tripura 1010 010 101 06 0 mdash 06Uttarakhand 11541 005 577 35 505 505 (16)Uttar Pradesh 85902 100 85902 5161 93375 1238 4227West Bengal 41896 025 10474 629 5205 205 109

Total 25372 217959 104784Source CEA base data for 2011-2012 and escalated for 2012-2013 based on 18th EPS escalation rates for the same period lowastbased on the data provided by NVVNstate agencies and project developers Italic numbers are the surplus capacity built-up

26 states 19 have shown their presence in the class of solarIndia in spite of relatively high generation cost (Table 5) It isexpected that when cost will reduce with increasing capacitystates which have low or no capacity may contribute signifi-cantly

Moreover Table 6 shows that the installed capacity(104787MW) under various policy measures is dominatedby state policies (6583) which is in particular the successmantra of state of Gujarat (68981MW) The peculiarity oftheses installation scenarios should be taken into accountwhile devising the policy for future

31 Development under JNNSM To achieve the long-termgoal of NAPCC Jawaharlal Nehru National Solar Mission(JNNSM) was launched on 11th January 2010 with an

objective tomaximize generation of power from solar energyThus it also constitutes a major contribution by India to theglobal effort to meet the challenges of climate change Theimmediate aim of the mission is to focus on setting up anenabling environment for solar technology penetration in thecountry both at a centralized and decentralized level [16]

Table 7 shows JNNSMrsquos targets with time line The firstphase (up to March 2013) focuses on promoting off-gridsystems including hybrid systems to serve the populationwhich is located in remote areas For the first phase modesttargets were set under the expectation that this developmentwould bring down costs under enabling framework and sup-port for entrepreneurs to develop markets This cost reduc-tionwould help in creating conducive environment to achievethe ambitious targets of the second phase (2013ndash17) and thirdphase (2017ndash2022)


Table 4 Solar power capacity requirement by 2022 [31] and [15]

YearEnergy demand

(MU)lowast(119860)

Solar RPO ()(119861)

Solar energy requirement (MU)for RPO compliance

(119860 times 119861)

Solar capacity requirementfor RPO compliance

(MW)

Solar capacity requirementfor solar dominant scenario

(MW)

2011-2012 953919 025 2385 1433 5142012-2013 1022287 025 2556 1536 24142013-2014 1095555 050 5478 3291 54142014-2015 1174074 075 8806 5291 84142015-2016 1258221 100 12582 7560 124142016-2017 1348399 125 16855 10127 174902017-2018 1443326 175 25258 15176 224902018-2019 1544936 225 34761 20885 284902019-2020 1653700 250 41343 24839 354902020-2021 1770120 275 48678 29247 mdash2021-2022 1894736 300 56842 34152 mdashNote lowastbased on the National Electricity Plan for Generation January 2012Source WISE Pune [15]

Table 5 State-wise distribution of installed solar capacity as on 31st of November 2012 [32]

Sr no States Installed capacity (MW)JNNSM State policy RPSSGPGBI scheme REC Other Total of total

1 Andhra Pradesh 1200 mdash 975 mdash 200 2375 2272 Arunachal Pradesh mdash mdash mdash mdash 003 003 0003 Chhattisgarh mdash mdash 400 mdash mdash 400 0384 Delhi mdash mdash mdash mdash 253 253 0245 Goa and UT mdash mdash mdash mdash 169 169 0166 Gujarat mdash 68981 mdash mdash mdash 68981 65837 Haryana mdash mdash 780 mdash mdash 780 0748 Jharkhand mdash mdash 1600 mdash mdash 1600 1539 Karnataka 500 mdash mdash mdash 900 1400 13410 Kerala mdash mdash mdash mdash 003 003 00011 Madhya Pradesh mdash mdash 525 200 mdash 725 06912 Maharashtra 1100 mdash 500 mdash 500 2100 20013 Orissa 500 mdash 700 mdash 100 1300 12414 Punjab 200 mdash 600 mdash 133 933 08915 Rajasthan 13750 mdash 1000 275 5090 20115 192016 Tamil Nadu 500 mdash 500 mdash 705 1705 16317 Uttarakhand mdash mdash 500 mdash 005 505 04818 Uttar Pradesh 500 mdash 700 mdash 038 1238 11819 West Bengal mdash mdash mdash mdash 205 205 020

Total 18250 68981 8780 475 8301 104787

Table 6 Policy-wise distribution of installed solar capacity as on 31st of November 2012 [32]

Projects Capacity (MW) of totalProjects under JNNSM 1825 1742Projects under the state policy 68981 6583Projects under RPSSGPGBI scheme 878 838Projects under REC scheme 475 045Other projects 8301 792Total 104787


Table 7 JNNSM targets with timeline [16]

2010ndash2013 2013ndash2017 2017ndash2022Utility grid powerincluding roof top (MW) 1000ndash2000 4000ndash10000 20000

Off-grid solar applications(MW) 200 1000 2000

Solar collectors (sq m) 7 million 15 million 20 million

Table 8 Technology-wise capacity targets under JNNSM Phase II (MW) [17]

Segment Share () Capacity Central scheme State schemeSolar PV 70 6300 2520 3780Solar thermal 30 2700 1080 1620Total 10000 3600 5400

Table 9 Floor and forbearance prices for RECs (Rs2REC)lowast

REC prices till 2011 REC prices for 2012ndash2015Forbearance price 17000 13400Floor price 12000 9300lowast1 REC = 1MWh21USD = INR 545 as of September 20 2012

Table 10 Solar REC trading details from IEX [33]

Year Month Buy bids(REC)

Sell bids(REC)

Cleared volume(REC)

Cleared price(RsREC) No of participants

February 11 mdash mdash mdash 1March 30001 mdash mdash mdash 3April mdash mdash mdash mdash mdashMay mdash mdash mdash mdash mdashJune mdash mdash mdash mdash mdash

2011 July mdash mdash mdash mdash mdashAugust 1 mdash mdash mdash 1

September 7 mdash mdash mdash 4October 1 mdash mdash mdash 1November 43 mdash mdash mdash 2December 495 mdash mdash mdash mdashJanuary 2635 mdash mdash mdash 10February 582 mdash mdash mdash 9March 5782 mdash mdash mdash 26April 289 mdash mdash mdash 9May 1637 149 5 13000 16

2012 June 9489 541 336 12750 17July 8554 419 93 12800 11

August 1728 310 129 12850 13September 1317 1094 735 12500 23October 1263 864 820 12680 19November 1458 758 733 12720 21December 1608 977 931 12620 36


Table 11 Compilation of recently declared preferential tariffs for solar PV and solar thermal technologies [27]

Statecentre Solar PV Solar thermalTariff (RskWh) Control period Tariff (RskWh) Control period

CERCLev-1039AD-104After AD-935

FY 2012-2013Lev-1246AD-124After AD-1122

FY 2012-2013

Andhra Pradesh 1791 (without AD)1495 (with AD)

2010-2011 and2011-2012

1531 (without AD)1285 (with AD)

2010-2011 and2012-2013

Bihar 109 (without AD)0985 (with AD)

Up to March 312015commissioning



Gujarat

For MW scale plantsJan 2012ndashMarch 2013 1037(without AD) 0928 (with AD)FY 2013-2014 964 (without AD)863 (with AD)FY 2014-2015 897 (without AD)803 (with AD)For kW scale plantsJan 2012ndashMarch 2013 1244(without AD) 1114 (with AD)FY 2013-2014 1157 (withoutAD) 1036 (with AD)FY 2014-2015 1076 (withoutAD) 963 (with AD)

Jan 29 2012 toMarch 31 2015


Jan 29 2012 toMarch 31 2015

Haryana 918 (SPV crystalline)890 (SPV thin film)

3 years (till FY2013ndashFY 2015) 1217 3 years (till FY

2013ndashFY 2015)

Karnataka 145 (including rooftop and smallsolar PV plants)


1135Up to March 312013commissioning

Kerala 1518 (including incentives)

For projectscommissionedbefore Dec 312009

Madhya Pradesh 1044 (capacity gt 2MW)1070 (capacity up to 2MW)

Aug 2012 to March2014 1265 Aug 2012 to March

2014

MaharashtraLev-1116 (1166-RT and SSPGP)AD-165 (165)After AD-951 (1001)

FY 2010ndash2014 (5years from the dateofcommencement)

Lev-1344AD-197After AD-1147


OrissaLev-1780AD-303After AD-1477

Plantcommissioned inFY (2012-2013)onwards



PunjabLev-1039AD-104After AD-935

FY 2012ndash2016 (5years from thenotification oforder)


FY 2012ndash2016

Rajasthan

963 (plant commissioned by 31stof March 2014)with AD-1045963 (roof top and SSPGcommissioned by 31st March2014)

1195 (without AD)With AD-10451195 (small solar thermal powergen commissioned by 31st ofMarch 2015)

FY 2012-2013

Tamil NaduLev-1845AD-411After AD-1434

FY 2010-2011 (till310512)


FY 2010-2011 (till310512)


Table 11 Continued


UttarakhandLev-1770AD-165After AD-1605

FY 2009ndash2012 (3years from thecommencement ofthese regulations)



Uttar Pradesh15 (commissioned by Dec 2011not covered under GOI incentivescheme)

FY 2010ndash2014 (5years)

13 (commissioned by Dec 2011not covered under GOI incentivescheme)


West Bengal

10 (capacity ranging 100KW to2MW availing GBI)10 (grid connected plant noteligible for any incentive andcommissioned up to 2012-2013)10 (projects commissioned afterFY 2012 till FY 2015)

FY 2013ndash2017 (5years) NA NA

To attract the investors JNNSM devises various incentiveinstruments such as RE VoucherStamp Capital SubsidyInterest Subsidy Viability Gap Funding (VGF) and GreenEnergy Bonds However the capacity built is only 1825MWwhich is concentrated around few states like Rajasthan(1375MW) Andhra Pradesh (12MW) Maharashtra(11MW) and so forth (refer Table 5) under first phase (as on31st of November 2012) This seeks immediate attention ofpolicy makers for reviewing their implementation strategy

Recently announced JNNSM second phase policy man-date [17] includes the learning from the initial setback It givesmore weightage to state scheme (5400MW) than centralscheme (3600MW) for target capacity installation (Table 8)It also focuses more on VGF for incentivizing the projects

To make the efforts more concentrated and specific in arecent initiative MNRE has given approval to the develop-ment of 54 solar cities [18] As of now (January 21 2013) 8master plans have been approved for eight citiesmdashAgra andMoradabad fromUttar PradeshThane andKalyan-Dombivlifrom Maharashtra Indore from Madhya Pradesh Kohimafrom Nagaland and Aizawl from Mizoram and Chandigarh[18] Thus by reducing scale MNRE expects better solarcapacity development in the near future

32 Development under REC The REC mechanism is amarket-based instrument to promote renewable sources ofenergy and development of market in electricity leading tothe sustainable development of the country RECmechanismhas been designed to address the mismatch between avail-ability of renewable electricity and the requirement of theobligated entities to meet their RPO by purchasing greenattributes of RE remotely located in the form of REC Theimplementation issues as well as institutional framework forIndia have been discussed in detail by Singh [19 20] andMNRE [21] Goyal and Jha [22] discussed in detail the frame-work to promote RE through a framework which puts intoplace Renewable Purchase Obligation (RPO) mechanism

In India RECs trading began in March 2011 on the plat-form of Indian Energy Exchange (IEX) and Power Exchangeof India (PXI) Though during initial period it could not

perform as per expectation but the performance has beenimproving during the last few months as shown in Table 10But still due to large unmet demand solar REC price has beenhovering around the forbearance price (Table 9) of Rs 13400REC However a recent notification by MNRE [23] whichclarified state agencies for allowing use of solar REC to non-solar RPO if it is above its minimum prescribed limit mayincrease the liquidity of solar REC market which is expectedto decrease the price of it

Though the capacity installed under this mechanism isonly 475MW (Table 6) but capacity registered under thismechanismhas reached close to 20MW[24] And the presenthigh price of REC holds bright prospects for this newlylaunched incentive scheme

33 Development under RPSSGPGBI Scheme Rooftop Pho-tovoltaic (PV) and Small Solar PowerGeneration Programme(RPSSGP) is a Generation-Based Incentives (GBIs) pro-gramme of the Ministry of New and Renewable Energy(MNRE) under the JNNSM for rooftop and other small solarplants As of now the installed capacity of 878MW which iswell distributed across many states (Table 5) has been devel-oped under this scheme Due to limited access to smart gridnet metering connectivity this incentive has not yet beenharnessed to its fullest by the developers

34 Development under the State Policy Most of the stateshave been using preferential tariffs as a tool to promote solarenergy in their states (Table 11) But due to huge financialburden states of Gujarat and Andhra Pradesh have switchedtheir focus from preferential tariff to REC market in theirrecently announced solar policies [25 26] Moreover stateof Gujarat has also made provision for sharing Clean Devel-opment Mechanism (CDM) benefits to developers startingfrom 100 in first year after commissioning and thereafterreducing it by 10 every year till the sharing becomes equal(50 50) between the developers and the consumers [25]

Likewise several states have also comeupwithmany otherencouraging policies like Accelerated Depreciation (AD) oncapital investment soft loan for financing reduced or no


transmission and wheeling charges no cross subsidy sur-charge for open-access transactions reduced or no intra-stateAvailability-Based Tariff (ABT) nonapplicability of meritorder dispatch principles exemption from electricity tax taxconcessions refund of stamp duty and registration chargespaid for land purchase single window clearance faster powerevacuation approval and so forth [25ndash27]

4 Conclusion

The study concludes that though JNNSM first phase couldnot perform up to the expectations the state level policieshave been doing well to fill the gap The recently announcedJNNSM Phase II target composition of 3600MW for centraland 5400MW for states changes in policies and schemes inlight of the experience of Phase I and development of 54solar cities are likely to impact theNational SolarMission per-formance and enhance the overall visibility of solar-basedelectricity generation and utilization

Abbreviations

CDM Clean development mechanismCSP Concentrated solar powerDNI Direct normal irradianceFiT Feed-in tariffGBIs Generation-based incentivesGoI Government of IndiaIEX Indian energy exchangeIMD Indian meteorological departmentJNNSM Jawaharlal Nehru national solar missionMNRE Ministry of new and renewable energyNAPCC National action plan for climate changeNREL National renewable energy laboratoryPV PhotovoltaicPXI Power exchange of IndiaRE Renewable energyREC Renewable energy certificateRPO Renewable purchase obligationRPSSGP Rooftop photovoltaic and small solar power

generation programmeSERC State electricity regulatory commissionSHP Small hydropowerVGF Viability gap funding

References

[1] IEAWorld EnergyOutlook International EnergyAgency ParisFrance 2011

[2] GEA Global Energy Assessment Toward a Sustainable FutureCambridge University Press Cambridge UK 2012

[3] REN21 ldquoRenewables 2012rdquo Global Status Report REN21 Secre-tariat Paris France 2012

[4] IPCC ldquoSpecial Report on Renewable Energy Sources and Cli-mate Change Mitigationrdquo Cambridge University Press Cam-bridge UK 2007

[5] IEA Energy Technology Perspectives International EnergyAgency Paris France 2008

[6] ldquoSolar radiant Energy over Indiardquo IndiaMeteorological Depart-ment Ministry of Earth Sciences Government of India 2009

[7] M Pipattanasomporn A study of remote area internet accesswith embedded power generation [PhD thesis] Virginia Poly-technic Institute and State University Alexandria VA USA2004

[8] NREL httpwwwnrelgovinternationalra indiahtml 2010[9] httpmnregovin 2012[10] GOI ldquoNational Action Plan on Climate Changerdquo Prime Minis-

terrsquos Council on Climate Change Government of India (GOI)New Delhi India 2008 httpwwwforumofregulatorsgovinDatastudyTOR Incentive20structure20for20fulfillment20of20RPOpdf

[11] M Ringel ldquoFostering the use of renewable energies in the Euro-pean Union the race between feed-in tariffs and green certifi-catesrdquo Renewable Energy vol 31 no 1 pp 1ndash17 2006

[12] P Menanteau D Finon and M L Lamy ldquoPrices versus quan-tities choosing policies for promoting the development ofrenewable energyrdquo Energy Policy vol 31 no 8 pp 799ndash8122003

[13] Global Trends in Renewable Energy Investment FrankfurtSchoolmdashUNEPCollaboratingCentre for Climateamp SustainableEnergy Finance 2012

[14] httpwwwmnregovininformationsolar-rpo 2013[15] WISE ldquoAchieving 12 green electricity by 2017rdquo Tech Rep

World Institute of Sustainable Energy Pune India 2010[16] MNRE Jawaharlal Nehru National Solar Mission (JNNSM)

Ministry of New and Renewable Energy (MNRE) Governmentof India New Delhi India 2010 httpwwwmnregovinfile-managerUserFilesmission document JNNSMpdf

[17] httpmnregovinfile-managerUserFilesdraft-jnnsmpd-2pdf 2013

[18] httpwwwpv-magazinecomnewsdetailsbeitragindia-identifies-54-solar-cities-releases-jnnsm-figures 100009617axzz2J5UVafsH 2013

[19] A Singh ldquoEconomics regulation and implementation strategyfor renewable energy certificates in Indiardquo India InfrastructureReport Infrastructure Development in a Low Carbon Econ-omy Oxford University Press New Delhi India 2010

[20] A Singh ldquoA market for renewable energy credits in the Indianpower sectorrdquo Renewable and Sustainable Energy Reviews vol13 no 3 pp 643ndash652 2009

[21] MNRE ldquoReport on development of conceptual framework forrenewable energy certificate mechanism for Indiardquo Tech RepMinistry of New and Renewable Energy (MNRE) New DelhiIndia 2009 Prepared by ABPS Infrastructure Advisory PrivateLimited

[22] M Goyal and R Jha ldquoIntroduction of renewable energy certi-ficate in the Indian scenariordquo Renewable and Sustainable EnergyReviews vol 13 no 6-7 pp 1395ndash1405 2009

[23] MNRE MNRE Government of India (GoI) New Delhi Indiahttpmnregovinfile-managerUserFilessolar-rpopdf 2012

[24] httpmnregovinfile-managerUserFilesseptember month2012 rerfpdf 2013

[25] httpgedagujaratgovinpolicy filesGERC20order20Solar20Energypdf 2012

[26] httpbridgetoindiacomarchivepolicyAndhra-Pradesh-Solar-Solar-Policy-2012-Abstractpdf 2013

[27] httpmnregovininformationrenewable-energy-regulatoryframework 2013


[28] httpwwwdlrdettdesktopdefaultaspxtabid-2893httpstatus-404 2011

[29] MNRE MNRE Government of India (GoI) New Delhi Indiahttpmnregovinfile-managerUserFilesSolar20RPOstate-wise-solar-RPO-targetspdf 2012

[30] httpmnregovinfile-managerUserFilesSolar20RPOExpected20Solar20RPO20requirement20and20compliance20for202012-13xlsx 2013

[31] httpmnregovinfile-managerUserFilesSolar20RPOsolar-RPO-requirement-by-2022pdf 2013

[32] httpmnregovinfile-managerUserFilesSolar20RPOState20-20wise20solar20installed20capacity20break-upxlsx 2013

[33] httpwwwiexindiacomReportsRECDataaspx 2013

TribologyAdvances in

Hindawi Publishing Corporationhttpwwwhindawicom Volume 2014

International Journal of

AerospaceEngineeringHindawi Publishing Corporationhttpwwwhindawicom Volume 2014

FuelsJournal of


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Figure 1 Indiarsquos DNI resource at 10 km resolution (source NREL[8])

global radiation varies from 1600 to 2200 kWhm2 [6] whichis typical of the tropical and subtropical regions NRELrecently released 10 km resolution solar resource maps forIndia based on the SUNY satellite Figure 1 shows the annualaverage direct normal irradiance (DNI) across India whichillustrates that most areas of the country have greater than5 kWhm2day of DNIThis image shows the areas of highestresource occurring in the state of Gujarat Rajasthan and thehigh-elevation Himalayan region Figure 1 also shows largeareas with annual average DNI greater than 55 kWhm2dayin the state ofMadhya Pradesh Chhattisgarh andMaharash-tra and smaller land areas with similar resources in severalother states This area could be further increased by the useof building-integrated PV Though large-scale CSP has notyet been deployed in India one study has estimated thatthis technology alone could generate 11000 TWh per year forIndia (Table 1) In addition it also offers huge potential fordecentralized distributed electricity supply system which canaddress the problem of electricity to a remote location withlesslower transmission losses

In spite of huge solar energy potential the portfolio of REhas developed in a very unique way in India though latelyintroduced wind power technology has left behind all thetraditional RE technologies such as biomass solar power andSHP as shown in Figure 2 It also demonstrates that solarpower has the maximum untapped potential as 979 ofestimated potential of 50000MW And the overall untappedpotential of 813 seeks immediate attention of policymakers

Table 1 Indiarsquos estimated land area suitable for CSP developmentand generation potential [28]

DNI class(kWhm2year)

Land area suitable forCSP development (km2)

CSP generatingpotential (TWhyear)

2000ndash2099 83522 78932100ndash2199 11510 11402200ndash2299 5310 5502300ndash2399 7169 7742400ndash2499 3783 4262500ndash2599 107 132600ndash2699 976 1192700ndash2800+ 120 15Total 112497 10930

4913

0

1538

4

1798

2

5000

5000

0

1374

96

1796

7

3434

1210

2110

1044

2576

5

Estimated potential (MW)Installed capacity (MW)Untapped potential ()

16

14

12

10

8

6

4

2

0

RE ca

paci

ty

times104

1200

1000

800

600

400

200

00

Ove

rall

Sola

r pow

er (S

PV)

Biom

ass p

ower

Win

d po

wer

Unt

appe

d po

tent

ial (

)

Baga

sse c

ogen

erat

ion

Smal

l hyd

ropo

wer

Figure 2 Development of overall RE portfolio as on 31st of August2012 (source MNRE [9])

for exploiting this available RE resource in a very efficientand effective manner to overcome the problem of electricityshortage

3 Development of Solar Electricity Systemunder Different Policy Measures in India

Government of India has recognized the importance of solarenergy as one of the sustainable sources of energy underNational Action Plan for Climate Change (NAPCC) NAPCCaims to derive 15 of its energy requirements from REsources by the year 2020 [10] Various policy measures suchas preferential tariff or fixed tariff or feed-in tariff (FiT) RPOexcise duty exemption and soft loan have been implementedto achieve the above-mentioned target













Solar RPOtarget

(2012-2013)

Solar RPOtarget

(2012-2013)


RPO













YearEnergy demand

(MU)lowast(119860)



(119860 times 119861)


(MW)


(MW)





Total 18250 68981 8780 475 8301 104787














Sell bids(REC)

Cleared volume(REC)





2012 June 9489 541 336 12750 17July 8554 419 93 12800 11






FY 2012-2013Lev-1246AD-124After AD-1122

FY 2012-2013


2010-2011 and2011-2012


2010-2011 and2012-2013





Gujarat


Jan 29 2012 toMarch 31 2015


Jan 29 2012 toMarch 31 2015



2013ndashFY 2015)








2014












FY 2012ndash2016

Rajasthan



FY 2012-2013


FY 2010-2011 (till310512)


FY 2010-2011 (till310512)


Table 11 Continued










West Bengal















4 Conclusion


Abbreviations



References






































FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of





























Solar RPOtarget

(2012-2013)

Solar RPOtarget

(2012-2013)


RPO













YearEnergy demand

(MU)lowast(119860)



(119860 times 119861)


(MW)


(MW)





Total 18250 68981 8780 475 8301 104787














Sell bids(REC)

Cleared volume(REC)





2012 June 9489 541 336 12750 17July 8554 419 93 12800 11






FY 2012-2013Lev-1246AD-124After AD-1122

FY 2012-2013


2010-2011 and2011-2012


2010-2011 and2012-2013





Gujarat


Jan 29 2012 toMarch 31 2015


Jan 29 2012 toMarch 31 2015



2013ndashFY 2015)








2014












FY 2012ndash2016

Rajasthan



FY 2012-2013


FY 2010-2011 (till310512)


FY 2010-2011 (till310512)


Table 11 Continued










West Bengal















4 Conclusion


Abbreviations



References






































FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of



















YearEnergy demand

(MU)lowast(119860)



(119860 times 119861)


(MW)


(MW)





Total 18250 68981 8780 475 8301 104787














Sell bids(REC)

Cleared volume(REC)





2012 June 9489 541 336 12750 17July 8554 419 93 12800 11






FY 2012-2013Lev-1246AD-124After AD-1122

FY 2012-2013


2010-2011 and2011-2012


2010-2011 and2012-2013





Gujarat


Jan 29 2012 toMarch 31 2015


Jan 29 2012 toMarch 31 2015



2013ndashFY 2015)








2014












FY 2012ndash2016

Rajasthan



FY 2012-2013


FY 2010-2011 (till310512)


FY 2010-2011 (till310512)


Table 11 Continued










West Bengal















4 Conclusion


Abbreviations



References






































FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of




























Sell bids(REC)

Cleared volume(REC)





2012 June 9489 541 336 12750 17July 8554 419 93 12800 11






FY 2012-2013Lev-1246AD-124After AD-1122

FY 2012-2013


2010-2011 and2011-2012


2010-2011 and2012-2013





Gujarat


Jan 29 2012 toMarch 31 2015


Jan 29 2012 toMarch 31 2015



2013ndashFY 2015)








2014












FY 2012ndash2016

Rajasthan



FY 2012-2013


FY 2010-2011 (till310512)


FY 2010-2011 (till310512)


Table 11 Continued










West Bengal















4 Conclusion


Abbreviations



References






































FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of





















FY 2012-2013Lev-1246AD-124After AD-1122

FY 2012-2013


2010-2011 and2011-2012


2010-2011 and2012-2013





Gujarat


Jan 29 2012 toMarch 31 2015


Jan 29 2012 toMarch 31 2015



2013ndashFY 2015)








2014












FY 2012ndash2016

Rajasthan



FY 2012-2013


FY 2010-2011 (till310512)


FY 2010-2011 (till310512)


Table 11 Continued










West Bengal















4 Conclusion


Abbreviations



References






































FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of


















Table 11 Continued










West Bengal















4 Conclusion


Abbreviations



References






































FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of



















4 Conclusion


Abbreviations



References






































FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of




























FuelsJournal of







Advances in



Journal of


Renewable Energy





RotatingMachinery


EnergyJournal of

















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